Total takes enters agreement to acquire Toshiba America's LNG portfolio

Total has signed an agreement with Toshiba to take over its portfolio of liquefied natural gas (LNG) in the US. It includes a 20-year tolling agreement for 2.2 million tonnes per annum (Mtpa) of LNG from Freeport LNG train 3 in Texas and the corresponding gas transportation agreements on the pipelines feeding the terminal. Train 3 of the Freeport LNG plant is expected to start commercial operations by Q2 2020.

Under the transaction, Total will acquire all the shares of Toshiba America LNG corporation for a consideration of US$15 million to be paid by Total to Toshiba and will be assigned all contracts related to their LNG business by Toshiba Energy Systems and Solutions Corp. for a consideration of US$815 million to be paid by Toshiba to Total.

Total will, therefore, receive from Toshiba a net cash consideration of US$800 million payable at the closing date.

The proposed transaction is subject to the applicable legally required approvals by the regulatory authorities and partners. The transaction is expected to close by the end of 2019.